MAN lists 10 ways to revive, stabilise Nigeria’s economy

THE Manufacturers Association of Nigeria (MAN) has lamented that more manufacturing companies are on the verge of collapse, calling on the Federal Government to implement 10 measures to save the manufacturing sector and correct the lacklustre performance of the nation’s economy alike.

President, Manufacturers Association of Nigeria (MAN), Mansur Ahmed, who said this at the 39th Anjual General Meeting of MAN held in Ibadan, noted that in recent times the manufacturing sector was suffering challenges that include high cost of diesel and other petroleum products, acute shortage and high cost of forex, insecurity, high cost of raw materials, inconsistent government policies, high regulatory compliance cost, gridlock and inadequate infrastructure at the ports.

Among other corrective measures Ahmed said it was important for the government to prioritise allocation of forex to the manufacturing sector and mandate the Central Bank of Nigeria (CBN) to direct commercial banks to transparently process forex applications by manufacturers.

Ahmed further called on the government to remove the 7.5 per cent Value Added Tax (VAT) on diesel pending the normalisation of the international supply system.

This was even as he asked the government to quickly resolve what it described as complexities surrounding the seamless implementation of the Eligible Customer Initiative to enable manufacturers to take advantage of the stranded electricity.

Represented by Vice President, Lagos zone, MAN, Mr Francis Meshioye, the association also demanded a reduction of port charges and removal of demurrage for unduly delayed clearance.

He noted that it was important to improve on the time taken to clear container/cargoes at the ports by ensuring that sound trade facilitation equipment such as scanners are available.

Furthermore, Ahmed called on the government to monitor the implementation of the Executive Order 003 to ensure compliance by Ministries, Departments and Agencies (MDAs) and should be cascaded to local and state government levels.

Ahmed also reiterated the association’s call on the Federal Government to urgently convene a strategic meeting with key operators in the Nigerian economic space to deliberate and craft a national strategic response to the disruptive impact of the ongoing Russian-Ukraine war on the global supply value chain and its debilitating impact on the nation’s economy.

He noted that such a meeting will help identify viable options to ameliorate the impact of the disruption, agree on ways to assuage other pain points in the business environment, activate innovative solutions to familiar and emerging macroeconomic and infrastructure challenges.

To ensure the sustenance of existing manufacturing companies, Ahmed called on the governments of South-West states to institute a more effective and efficient consultative mechanism with the MAN.

He noted that it was imperative to rethink the nation’s development strategy to correct the lacklustre performance of the national economy.

Specifically, he said it was necessary for the federal and state governments to work in synergy with relevant stakeholders in fashioning appropriate strategies to improve and stabilise the economy.

In Oyo State, the MAN president said the association was willing to support the rehabilitation of the roads on the Oluyole Industrial Layout, Ibadan, in exchange for tax holidays.

Lamenting loss of goods and man-hour suffered by manufacturers plying bad roads, Ahmed urged the state government to embark on a construction and rehabilitation of roads.

In addition, he demanded a harmonisation of taxes, especially local government and road related levies to aid ease of compliance by members of the association.

He also said MAN members were keen on harmonisation of national and state environmental laws to reduce the cost of compliance.

In his remarks at the event, acting governor of Oyo State, Mr Bayo Lawal, charged MAN to continue to create additions to the manufacturing value chain, and liaise with other agencies and stakeholders to ensure that Nigerian products are appealing to Nigerians and foreigners.

Speaking on the topic, ‘Sustainable public private partnership: Disruptive innovation for inclusive growth,’ Director of Research, National institute for Policy and Strategies Studies (NIPPS), Professor Dung Pam Sham, have recommended that for public private partnership (PPP) to be an innovation for manufacturing companies, manufacturers should have a good understanding of PPP economy system.

He noted that members of MAN must understand the reform objective of the government and policy environment, adding that manufacturers also needed to understand the legal, regulatory and institutional framework.

Pam Sham said that PPP fosters economic growth by developing new investment opportunities and increasing provision of public goods and services.

He advised that MAN should have a code to standardise practices on regulating behaviour of members.

He further added that to promote inclusive growth, the state and private sector actors must be patriotic in using PPP to build Nigeria.

Speaking, Oyo, Osun, Ondo, Ekiti States Branch Chairman, Lanre Popoola, in his remarks stated that businesses are still struggling and the environment still very challenging and toxic adding that despite all economic policies introduced by various arms of government and their agencies, multiple issues like hike in petroleum prices, unstable power and forex are still very prevalent which make economic planning complicated.

While he also lamented that the inability of the government to harmonise the taxes of local and state ministries, departments and agencies poses another challenge for manufacturers to budget effectively.

He, however, commended the Oyo State government, Oyo State Ministry of Commerce, Industry, Investment and Cooperative,Oyo State Signage and Advertisement Agency and the Osun Ondo and Ekiti States government for their support to MAN.

In their separate goodwill messages, the representatives of the Ondo State governor, Rotimi Akeredolu, represented by Ademujimi Adenike, Ekiti State governor, Kayode Fayemi, represented by Muyiwa Olumilua all commended MAN and pledge to give more support to MAN.

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